1. Which of the following is the reason why insurance premiums on a key employee are not deductible?

		A deduction for premiums would be inconsistent with the tax-free treatment of insurance proceeds resulting from the death of a key employee.
		The rule was grandfathered from a time when the Internal Revenue Code disallowed all insurance premiums deductions.
		A deduction for premiums would favor insurance companies over other businesses.
		All expenses related to a trade or business are deductible unless specifically disallowed by the Internal Revenue Code.
		A deduction for premiums would be impractical because it would require taxpayers to trace the payment of insurance premiums to the receipt of proceeds.